The 15-Minute Tip: When it's time to buy

If you've got some pocketbook power, there are bargains to be had

NEW YORK (MarketWatch) -- After years of sellers' markets in housing, building materials, energy, and just about everything else, the tide has turned. Now it's time for some bargain hunting.

Heck, even oil has come down 50%. While financial caution is definitely in order, sometimes the right timing can save you a lot of money on items that you were planning to buy anyway.

Here are three places I'd consider doing some shopping now:

1. Stocks

Warren Buffett has told us he's buying U.S. stocks. "Be greedy when others are fearful," and "if you wait for the robins, spring will be over."

Maybe Starbucks, one of my long-term favorites, is an example. When the company went public in 1993, it had about 1,100 stores; now it's got 15,000 stores in 44 countries. But the stock is selling for only twice the go-public price. One positive about companies such as Starbucks now: People don't have to borrow to buy their product.

Several closed-end funds are selling at a 10% to 20% discount to their NAV. Therein lies the bargain: The price is 10% to 20% below value, which may be another 20% to 40% off the high depending on the type of fund. Many have been sold hard by hedge funds and other institutional investors to raise cash. They've always been a hidden corner of the investing world, but are worth a look. The Closed-End Fund Association Web site can help you get started. See the site.

Warning: Some of these funds did use leverage to build their portfolios, meaning they borrowed money. If you're not sure how to choose a fund, check with an adviser or call the fund company to get an explanation of the fund and risks.

I wouldn't rush headlong into any buy. Nibbling a little here, a little there, will dollar-cost-average your portfolio nicely.

2. Cars

We've had soft car markets before, but not like this one. The timing of the financial crisis couldn't be more of a perfect storm for the automakers who just finished pushing 2009 models into dealerships. On top of the well-publicized ills of the automakers, the dealerships, once among the most profitable businesses around, are facing their own financial crisis these days.

Financing might be tough, but if you can scrape together the funds, it may be just about the best time ever for a deal.

3. Life insurance

Remember the post-9/11 days? Terrible investment performance plagued life insurers, who count on investment returns to make profits and subsidize premiums. That combined with heightened fears and risks led insurers to raise rates big time.

Less worry about life-threatening disasters and a strong stock market have brought rates down. But now another period of dismal returns could drive them back up. So if you're thinking about buying life insurance or adding some for the long term, I'd be doing that now.

Just one thing: Make sure you need it -- or, in the case of investments, make sure they actually fit your long-term goals and risk tolerance -- before you buy. The wrong thing at the right price is still the wrong thing.

Jennifer Openshaw is co-founder and president of the soon-to-launch WeSeed, a new approach to demystifying the stock market for everyday people, and author of "The Millionaire Zone." You can reach her at jopenshaw@themillionairezone.com.

Jennifer
Openshaw

Jennifer Openshaw is a nationally known financial leader, innovator, and advocate. She's the author of "The Socially Savvy Advisor -- Compliant Social Media for the Financial Industry" and has advised Fortune 500 companies, including Microsoft.

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Jennifer
Openshaw

Jennifer Openshaw is a nationally known financial leader, innovator, and advocate. She's the author of "The Socially Savvy Advisor -- Compliant Social Media for the Financial Industry" and has advised Fortune 500 companies, including Microsoft.

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